X2 issued callable bonds on January 1, 2018. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity Decrease in Carrying Carrying Value Interest Expense Date /1/2018 12/31/2018 12/31/2019 12/31/2020 Cash Paid Value $6,838 6,790 6,739 6,685 6,627 $737 785 836 890 948 $105,197 104,460 103,675 102,839 101,948 101,000 $7,575 7575 7,575 12/31/2022 7,575 What is the annual stated interest rate on the bonds? o 6.5% ? 75%. 3.3%. o 3.8%